Connecticut Estate Planning Attorneys Blog
You have probably heard the phrase “spend down” – something you could do to reduce your assets which would help to qualify you for Medicaid.
A prepaid funeral contract is one of those items that are considered exempt. In other words, its value won’t be counted when the Department of Social Services is reviewing your total assets.
The standard amount allowed by the the state of Connecticut for a prepaid irrevocable funeral service contract is $10,000.
This is good news if you are trying to qualify for Medicaid.
You now have more to spend down on a funeral contract. But the contract must be irrevocable – meaning that there is no option available to cancel the contract for its cash value…you cannot get your money back.
What is a prepaid funeral contract?
A prepaid funeral contract is a legal agreement which says you will pay now for funeral services that will be needed sometime in the future. Most people who pre-pay their funerals do so to make it easier for their families when they die. Others do it to save money: they buy at today’s prices to avoid tomorrow’s increased costs.
But purchasing these irrevocable contracts is extremely useful as you begin planning for Medicaid.
A good thing about these contracts is that they enable families to pre-pay for the costs of a funeral without having to commit to any particular funeral home.
What these contracts can cover
- Caskets
- Funeral home services
- Hearse transportation
- Flowers
- Headstone
- Car and limousine services
- Embalming
- Death certificates
- Burial plot dressing and cosmetology
- Transportation for family members
- Cemetery services and fees
- Memorial following the burial
The increase in the amount allowed for these irrevocable contracts is good news for Connecticut residents. If you’re wondering if a prepaid funeral contract is right for you, contact us today.
Related Posts:
Rules of Medicaid Eligibility
3 Things You Should Know About Medicaid
Be Careful: Transferring Assets to Qualify for Medicaid May Backfire
